Whether you’ve fallen on hard times or are looking for a passive income, renting a room in your home is a great way to make money.
As with anything, there are pros and cons to listing a room for rent. Even though the money is great, you’ll need to do a lot of research before you can give your new tenant a tour of your house.
If you want to rent a room in a house out, be sure to keep reading to help you learn the ins and outs of doing it the right way.
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Do Your Research
Before you can set up a listing, you’ll need to look into local laws and regulations around renting out a room. This includes ordinances about what constitutes a bedroom and what utilities you need to have for your tenant.
Your insurance company may also have rules about renting spaces in your home. You’ll want to contact the company, as they may alter your insurance plan to cover renters.
Similarly, if you’re a member of the Homeowner’s Association, there are rules within the organization that you’ll need to adhere to.
Doing research into local regulations is vital, as you could get fined for ignoring the rules. A hefty fine can wipe out any profit you’ve made from renting the room!
Decide on a Price
After you’ve looked into the laws around renting a room in your home, other tips include deciding on pricing.
You don’t want to undervalue your space, but pricing too high can leave you with an empty room. Cadehildreth.com can help you use your home to make money, so you don’t want to miscalculate the cost of the room.
To get an idea, you can look into the local market. This will ensure you can offer a competitive price for your room without overpricing.
You’ll also want to calculate all of the costs of your home, like your mortgage, property taxes, and insurance bill, and divide them to see what your monthly costs are.
You can then calculate the square footage of your home versus the room for rent to determine the best price. Don’t forget to include costs of updates and furniture in the final cost!
Vet Potential Renters
Finally, after you’ve learned how to rent a room in your house, you’ll need to decide on a tenant. While Fair Housing laws are in place to protect renters, you also have a say in who gets to live in your home.
Whether you list online or ask friends and family for a potential roommate, you’ll want to ensure that whoever is living in your home is credible. You can ask them to submit a background check to ensure they aren’t hiding anything.
How to Rent a Room in a House
Renting out a room is an amazing way to utilize space in your home that you don’t use while making a profit off of it!
Though these renting tips can help you ensure that everything is regulatory, it’s essential to ensure your renter has solid references and a good credit score.
If you found this guide on how to rent a room in a house informative, be sure to check out the rest of our website. There, you’ll find more great home and real estate tips and tricks.
